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Features

Update – Apple Pay In-Browser
Launched on September 13th

Apple Pay’s addition of one-touch website purchases to its existing use cases (NFC and
in-app) could raise the stakes in the increasingly competitive race for digital wallet adoption.

Overview of Apple Pay In-Browser Functionality

USE REQUIREMENTS Acquirers / Gateways
Apple lists 17 solutions already enabled in the U.S.
Consumers
Enablement – Apple Pay account creation and card
loading
Hardware – iPhone/iPad transactions can be
completed on one device, while Mac computer
initiated transactions require authorization via iPhone
(Touch ID) or Apple Watch (double click)
Software – Compatible Apple operating system and
Safari browser

Merchants
Apple Pay button enabled through an API (certain high
risk and charitable activities prohibited)

TRANSACTION FLOW

1 User selects Apple 2 3 User authorizes the 4 A receipt appears

Pay at checkout request appears on transaction from in user’s Safari
user’s mobile device mobile device browser

For an in-depth refresher on Apple Pay’s in-browser functionality, please see “ Buying Online with Apple Pay: Will It Help Apple Pay Adoption”?on our website.

Implications of Apple Pay’s In-Browser Launch

While Apple Pay’s new o ering is not revolutionary—there are similarities with PayPal One Touch
and Amazon 1-Click—the tech giant’s foray into in-browser payments may still impact industry participants.

APPLE Volume Growth
volume by opening up a larger market than mobile at the point-of-sale. Additionally, a
more complete product could drive Apple Pay adoption across all use cases.
Stickiness

DIGITAL WALLETS First Mover
ACQUIRERS, ISOs, PSPs wallets, but competitors plan to add in-browser (e.g., Android, Samsung, Microsoft).
Competitive Pressure – In-Browser payment from device/operating system-native
wallets threaten the market shares and growth prospects of digital wallets o ered by
payment networks (e.g., PayPal, Masterpass, Visa Checkout), FIs (e.g., Chase Pay, Wells
Fargo), and retailers (e.g., Amazon 1-Click, Walmart Pay).

Added Urgency – The importance of enabling Apple Pay has increased.
Moment for Mobile? – While m-Commerce has yet to really take o , a more complete

rive adoption.

Sources: First Annapolis Consulting research and analysis.

For more information please contact:

U.S. Headquarters Three Park Place, Suite 200 l Annapolis, Maryland 21401 1 of 1 Keizersgracht 313-I l 1016 EE Amsterdam l The Netherlands
Update – Apple Pay In-Browser Launched on September 13th P:+31 (0)20 530 0360

28 © 2016 First Annapolis Consulting, Inc.

Reprinted with permission.